The Euro had a strong week against its main rivals as investors chose to favour the single currency above that of the US Dollar. The markets cited the Euro as a more stable investment following the recent fiscal impasse debacle in the USA and concerns that a repeat performance of the stand-off between President Barrack Obama and Congress will occur in the coming months.
At the start of the week the Euro began was little moved against the Pound but hovered close to an eight-month high against the US Dollar. The single currency was able to find some support during Monday’s session after the latest German Producer Prices data came in better-than-forecast. At the close the Euro was set to make further gains as economists expected the majority of the week’s data releases to come in better than the previous month.
On Tuesday the Euro was little moved against the US Dollar remaining close to an eight-month high after the ‘Greenback’ found some support ahead of the release of US employment data. Data out of the US and UK looks dominated the markets as there was no important data for the Eurozone set for release until Wednesday.
The Euro spent much of Wednesday’s session trading close to a 23-month high against the US Dollar and spent much of the day stronger against the Pound. The cause for the single currency’s strong performance was the unveiling of the ECB’s new banking strategy which is designed to limit the chances of a repeat of the Euro crisis and as Spain looks set to have emerged from its two-year long recession. Weak data out of the United States also helped send the Euro higher.
On Thursday the Euro strengthened further against the Pound and the majority of its peers as data out of both the UK and US disappointed the markets. The Eurozone too posted worse than forecasted data but it was not enough to weaken demand for the currency in a week where concerns over the global economy and the Federal Reserve’s monetary easing programme dominated.
As the week drew to a close the Euro softened as the session neared its end but remained close to a two-year high against the US Dollar and was firmer against the Pound. The currency managed to shrug off declines despite Business confidence in Germany declining in October, data which took economists by surprise after rising for several consecutive months previously. According to the data released by the Munich based CESifo Group, business confidence fell to 107.4 in October, down from the previous reading of 107.7 and below forecasts for a rise to 108.0.
This week the Euro looks set to have a more turbulent week, it is likely to continue to maintain its strength against the US Dollar as speculation over when the US Federal Reserve will choose to begin tapering its monetary easing programme will weigh upon the ‘Greenback’.
Against the Pound the Euro has begun the week softer after data released over the weekend showed that house prices rose again in the UK in October. Positive business confidence data out of Italy is lent some support to the single currency but due to a lack of major data releases until Wednesday the Euro looks likely to be impacted by global factors until then.
Current Euro (EUR) Exchange Rates
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The Euro/US Dollar Exchange Rate is currently in the region of: 1.3807 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8521 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4356 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6601 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7242 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1733 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6964 >
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6024 >
(Correct as of 09:35 am GMT)
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